INFRASTRUCTURE PROGRAMME State of legacy projects and infrastructure maintenance projects Presented by: Act Director-General Date: September 2016

2  PURPOSE OF THE PRESENTATION  ALLOCATION AND EXPENDITURE AS AT 31 JULY 2016  FUNDED MAINTENACE AND UPGRADING PROJECTS IN 2016/17 FINANCIAL YEAR  INFRASTRUCTURE IMPROVEMENT PLAN  CONCLUSION OUTLINE OF THE PRESENTATION 2

3 To brief the Portfolio Committee for Arts and Culture on the state of the infrastructure programme in the DAC PURPOSE 3

4 INTRODUCTION The DAC has an Infrastructure Development Unit (IDU) that oversees construction, maintenance and payment of municipal services of the DAC infrastructure portfolio. The construction of buildings is mainly done by DPW and some projects were done by IDT. The private leasing portfolio is managed by entities themselves. The IDU is faced with the challenge of the limited capacity: it consists of a Director and three recently appointed Project Managers to implement the infrastructure programme. The challenges faced were: – Under expenditure – Poor project management – Limited monitoring and verification of work done Deliberations to resolve infrastructure challenges take place at the strategic level. Areas which require improvement were identified and processes for interventions were initiated. These are outlined in the slides with challenges and interventions. 4

5 ALLOCATION AND EXPENDITURE AS AT 31 JULY

6 EXPENDITURE AS AT 30 JULY PROGRAMMEAPPROPRIATIONEXPENDITURE% Arts and Culture Promotion and Development R Heritage Promotion and Preservation (Heritage Institutions Infrastructure work) R R % Institutional Governance (Legacy Projects) R R % TOTALR R %

7 EXPENDITURE AS AT 30 JULY * August reconciliation still underway

8 FUNDED MAINTENANCE AND UPGRADING PROJECTS 8

9 2016/17 INFRASTRUCTURE PROJECTS cont… 9 PROJECTBUDGET EXPENDITURE TO DATE STATUS Artscape Space Optimization project – upgrading of the foyers and theatres Design stage Market Theatre Foundation Upgrading of Laager Theatre Planning stage Upgrading and Refurbishment of the Windybrow Heritage House Design Stage Installation Back-up Generators Planning stage

/17 INFRASTRUCTURE PROJECTS cont… 10 PROJECTBUDGET EXPENDITURE TO DATE STATUS Performing Arts Centre of the Free state Mechanical Ventilation & Air Conditioning System Design stage The Playhouse Company Installation of Back-up Generators Planning stage State Theatre Refurbishment of foyer and ablutions Construction stage Replacement of stage lighting equipment Planning stage

/17 INFRASTRUCTURE PROJECTS cont… 11 PROJECTBUDGET EXPENDITURE TO DATE STATUS Incubator Polokwane Performing Arts Centre Feasibility stage Community arts centres Upgrading of Community Art Centres Planning phase Construction of Community Art Centres Planning phase

/17 INFRASTRUCTURE PROJECTS cont… 12 PROJECTBUDGET EXPENDITURE TO DATE STATUS Cultural precincts Red Location Design stage Other Cultural precincts Planning South African Roadies Association Planning Upgrading of public spaces Planning Total for ACPD

/17 INFRASTRUCTURE PROJECTS cont… 13 PROJECTBUDGET EXPENDITURE TO DATE STATUS Afrikaans Taal Museum en-monument Construction of workers change room Tender Stage Ditsong Museums of South Africa Repairs and Maintenance Mechanical and electrical work status quo report Construction stage Sammy Marks Museum - Construction renovation & Upgrading Construction stage

/17 INFRASTRUCTURE PROJECTS cont… 14 PROJECTBUDGET EXPENDITURE TO DATE STATUS Repairs and Maintenance programme :Civil and structural(Cultural History) Construction stage Luthuli Museum Construction of Resource Centre with Exhibition Space, Ablution Facilities and offices Tender stage

/17 INFRASTRUCTURE PROJECTS cont… 15 PROJECTBUDGET EXPENDITURE TO DATE STATUS National English Literary Museum Practical competition. (competition certificate will be handed over upon payment of outstanding invoices) Construction of the NELM building Nelson Mandela Museum Practical competition. (competition certificate will be handed over upon payment of outstanding invoices) Upgrading of Bhunga

16 PROJECTBUDGET EXPENDITURE TO DATE STATUS Facilities management and maintenance of the buildings Design Iziko Museums of South Africa Installation of the integrated system Construction stage Construction of a storage structure in the court yard Construction stage 2016/16 INFRASTRUCTURE PROJECTS cont…

17 PROJECTBUDGET EXPENDITURE TO DATE STATUS Robben Island Museum Desalination Plant Maintenance/Sewer Reticulation & Upgrades Design stage Restoration of the Blue stone Quarry and Walkways Design stage Harbour Precinct Project Design stage 2016/17 INFRASTRUCTURE PROJECTS cont…

18 PROJECTBUDGET EXPENDITURE TO DATE STATUS South African Library for the Blind Upgrading and Refurbishment of the Josie Wood Building and the Hemming Street House(Site clearance) Design stage National Library (Pretoria Campus) Facilities Management Contract Design stage Total /17 INFRASTRUCTURE PROJECTS cont…

19 PROJECTBUDGET EXPENDITURE TO DATE STATUS National Archives National Archive (Pretoria) OLD Building remedial work construction stage National Archive (Pretoria) Upgrading of fire protection system construction stage Archie Gumede Procurement Delvillewood Construction stage 2016/17 INFRASTRUCTURE PROJECTS cont…

20 PROJECTBUDGET EXPENDITURE TO DATE STATUS Gumtree Mill Planning Ingquza Hill Museum Phase 1 practical completion Enyokeni Cultural Precinct Planning OR Tambo Memorial planning stage Raymond Mhlaba Statue Procurement Sarah Baartman Centre construction stage Vlakplaas Planning 2016/17 INFRASTRUCTURE PROJECTS cont…

21 PROJECTBUDGET EXPENDITURE TO DATE STATUS JL Dube House Construction stage Liberation Heritage Route Planning Voortrekker Monument Infrastructure maintenance National Heritage Monument Under implementation Isandlwana Planning stage Information Management System for Infrastructure (IMSI) Planning stage Khoe & San Heritage Sites Planning stage Total for Institutional Governance /17 INFRASTRUCTURE PROJECTS cont… * IMSI is not an infrastructure project but a project management software / IT tool

22 CHALLENGES AND INTERVENTIONS 22

23 INFRASTRUCTURE IMPROVEMENT PLAN 23 ChallengeInterventionProgress to dateTimeframe Infrastructure projects were managed all over the department. Roles and Responsibilities amongst the Programmes were not clarified. Centralisation of the management of infrastructure projects Structure to Centralise the Infrastructure Portfolio is being developed but not yet finalised and implemented. The draft Terms of Reference have been developed 2 officials were managing infrastructure and office accommodation projects worth more than R500m and R100m respectively. Poor project management. Limited monitoring & verification of work done. Increase technical capacity 3 Construction Project Managers and 1 Property Manager were appointed. 31 July 2016

24 INFRASTRUCTURE IMPROVEMENT PLAN cont… 24 ChallengeInterventionProgress to dateTimeframe Escalated estimates and increased scope of work by Implementing Agents, e.g DPW Lack of determination re value for money. Establishment of the OMNIBUS for the Professional Service Providers, i.e Architects, Engineers, Quantity Surveyors. Terms of Reference were approved by Bid Adjudication Committee. The Advert is ready and will be placed out by 30 September March 2016 Delays due to unclear processes, e.g funding criteria, definition of the infrastructure projects, requirements for funding etc. Development of the infrastructure policy. Infrastructure policy was approved. (Terms of Reference are attached) 30 June 2016

25 INFRASTRUCTURE IMPROVEMENT PLAN cont… 25 ChallengeInterventionProgress to dateTimeframe The draw down schedule and necessary documentation required before the transfers are processed as stipulated by DAC policy were not submitted in the 1 st quarter. Work shops were conducted on required documentation and templates were developed. The following institutions with outstanding documentation were visited: Artscape, War Museum, Robben Island Museum and PACOFS. All the transfers which were due in the 1 st quarter will be completed before end of the 2 nd quarter. 30 September 2016 Approved infrastructure plan for MTEF period to avoid delays on implementation, under spending and ad hoc funding. Development of the User Immovable Asset Management Plan (UAMP) MTEF UAMP was approved and allocation letters approving funding for 3 years were forwarded to the institutions. 31 January 2016

26 INFRASTRUCTURE IMPROVEMENT PLAN cont… 26 ChallengeInterventionProgress to dateTimeframe Lack of functional structure in the DAC to oversee the implementation of infrastructure programme. Establishment of the Infrastructure Committee with members at executive level. Terms of Reference were developed and approved by Infrastructure Committee. July 2016 Lack of Integrated Technology System to manage and monitor the budget amongst the Programmes and Finance Directorate. Development of the Information Management System ( in the interim the unit will be able to use the MS Project to monitor projects) Specifications for phase 1 which will concentrate on alignment and sharing of information amongst Programmes and Finance This will include generating reports and attaching supporting documentation electronically. 31 March 2016

27 INFRASTRUCTURE IMPROVEMENT PLAN cont… 27 ChallengeInterventionProgress to dateTimeframe DAC couldn’t transfer funds committed for IDT projects pending the competition of the financial reconciliation which was received on 22 July Appointment of Rubiquant Quantity Surveyors to assess the IDT expenditure incurred on all DAC legacy projects. Rubiquant has submitted a preliminary report indicating possible overcharging on professional fees and materials. ADG has engaged IDT CEO on the preliminary report, requesting access to project sites and documents by Rubiquant to finalise the investigation. The lawyers of the two entities have met to finalise legal matters pertaining to court cases against IDT for non- payment of fees End October

28 CONCLUSION Under expenditure will be reduced by end of the third quarter. The Department has identified projects which will not spend as envisaged and shifted funds to projects which require additional funding. These virements will be approved by National Treasury on completion of the adjustment period in October Infrastructure projects oversight has been strengthened with new capacity brought on board.. 28

29 ENKOSI 29